The Benefits of Using your Credit Card for Everything

People often associate credit cards with excessive spending and fiscal irresponsibility. However, if you manage your money effectively, using credit cards to pay for everything can offer some great financial benefits. The credit card industry is highly competitive and card companies such as Capital One, American Express, Discover, etc, offer amazing benefits to their members. The key to being successful with a credit card is to pay it off completely each month, which prevents you from receiving any unnecessary finance charges. This article was created to show you the advantages of charging everything to your credit card.

Top 5 Benefits of using Credit Cards for Everything

Credit Card Rewards Points – The best credit cards will pay up to 2 points for every dollar that spend, which is equal to $0.02 per $1.00 spent. This may not sound like much, but it adds up fast. Another way to look at it is getting a 2% discount on anything you buy. The average family spends about 2500 a month. If this amount was spend on a rewards card it would net the family an extra $600 in free stuff each year.

Cash Back – If you don’t like rewards points, cash back can be a great alternative. Instead of racking up points that need to be redeemed, cash back rewards will simply be applied to your credit card statement. This can add up to significant savings throughout the course of the year. Some card companies offer bonuses in certain categories, such as gas and groceries, of up to 5% cash back.

Free Insurance Coverage and Roadside Assistance – Credit Card companies, such as Amex, offer free roadside assistance and insurance coverage for rental cars. This can be a huge cost savings for people who travel on a regular basis. It also eliminates the need to be a member of overpriced roadside assistance programs, such as AAA.

Free Concierge Services – Good credit card companies typically offer concierge services to their customers. This provides you with your own personal assistant to purchase entertainment tickets, arrange travel, and make restaurant reservations. This service will save you time and help you plan vacations for effectively.

Improved Credit Score – Spending responsibly on a credit card will lead to a better credit score. Having a good credit score will provide access to lower cost financing and better credit card rewards programs.

Learn more about using credit cards frequently.

We hope this article helped you learn more about the benefits of using your credit card for everything